Hundreds of thousands of people achieve financial stability and economic empowerment thanks to microfinance initiatives facilitated by Plan through its partners.
Through small loans and savings groups, Plan's microfinance programs offer assistance to marginalized communities, with a special emphasis on improving access to economic opportunities for women.
By providing access to financial resources, knowledge and the chance to accumulate savings, our microfinance programs allow families greater flexibility in managing their resources to become more resilient and provide for their children.
Village savings and loans associations (VSLA) - A community bank
What is a village savings and loans association and how does it benefit people in developing countries? Here's everything you need to know:
WHO? Youth and adults
WHAT? A program that allows members to pool their money and resources and invest in each other’s initiatives, like selling rice, returning to school or buying livestock.
WHY? These projects help people lift themselves out of poverty by helping them establish successful businesses. They also teach financial literacy and reinforce the benefits of working together to benefit everyone.
HOW? At each village savings and loans association (VSLA) meeting, the group focuses on business and loan proposals that have been put forward for consideration. They then determine which individuals to loan money to. After a loan is given, it must be repaid within a few months, with a small amount of interest.
Working in partnership
Plan works in partnership with local microfinance service providers as well as other organizations on poverty-breaking initiatives.
In Peru, for example, Plan’s work through partnerships has helped 8,000 families access financial services and receive educational support.
One such partner is Arariwa, a non-governmental organization with expertise in microfinance projects. Together we have helped bring village banks to rural areas of the Cusco region and complemented these services with educational projects on business management and children's and women's health.
See how youth microfinance projects in Niger, Senegal and Sierra Leone are providing over 89,000 youth with a better, brighter future!
See how 3 women have each used VSLA programs to become breadwinners in their families and leaders in their communities.
With nearly half the world living on less than $2 a day, microfinance is a vital solution. Here are six benefits of microfinance!